HC Deb 16 April 1913 vol 51 cc1952-3
Lord HUGH CECIL

I beg to ask a question of which I have given private notice, namely, whether the Chancellor of the Exchequer is aware that the Bank of England have decided to deduct Income Tax on stocks for the year 1913–14, although such tax has not yet been imposed; whether this decision is the result of communications from the Board of Inland Revenue or from the Treasury, and, whether, since this decision is illegal, he will use his influence with the Bank of England to induce it to conform to the law?

Mr. ROBERTSON

Each dividend warrant now bears a printed intimation that the Bank of England "have decided to continue to deduct 1s. 2d. in the £ for Income Tax from those dividends which are assessable to tax, this being the course which they think will cause the least inconvenience to all concerned. The amount deducted by the Bank is not being paid over to the Commissioners of Inland Revenue, but is being retained on behalf of the stockholders pending the passage of the necessary measures by Parliament with regard to Income Tax for the year 1913–14." The warrant goes on to intimate that in any case in which a stockholder demands the refund of the amount deducted the Bank will comply with his request. This course was adopted by the Bank, with my right hon. Friend's approval, to save trouble to trustees and others, and he sees no reason for departing from it.

Lord HUGH CECIL

May I ask the Home Secretary whether the course taken by the Bank is not illegal, and whether in pursuance of the powers to which he has just referred he will take some steps in the matter?

Mr. McKENNA

It is not illegal.

Lord HUGH CECIL

Was the Home Secretary present yesterday when the Attorney-General explained at great length that it was illegal?